Published On: Thu, Sep 10th, 2015

AVA Chairman questions government’s request for bank guarantee

Olivier ArrindellWILLEMSTAD – “If I understand the request by the Government of Curacao it appears that if AVA issues an irrevocable and unconditional Letter of Credit, in the amount of USD $48,9 million, then the Government of Curacao will issue an economic permit. Is that the current position of the Government of Curacao?” This was asked by the Chairman of the aviation company AVA Airways.

“Assuming then that AVA will have this irrevocable and unconditional Letter of Credit to be issued, to whom would the Letter of Credit be payable and under what terms would this irrevocable and unconditional Letter of Credit be administered?  What entity or trustee would be the arbitrator of the valid obligations of AVA, and under what circumstances would this irrevocable and unconditional Letter of Credit be released, and under what time frame?  Again, assuming that this irrevocable and unconditional Letter of Credit is issued, how often has the Government of Curacao demanded irrevocable and unconditional Letters of Credit from other businesses seeking to obtain economic permits, and under what circumstances?  And which regulations.”

Arrindell also said that when the Minister indicated in her letter of September 8, 2016 that the irrevocable and unconditional Letter of Credit is submitted to the Government of Curacao did she mean to instruct AVA that the irrevocable and unconditional Letter of Credit be issued directly in favor of the Government of Curacao?

Arrindell indicated that one can clearly see that this is unconstitutional and illegal.

The Chairman indicated that they are already in consultation with their legal advisors and will be sending a letter soon to the Minister of Traffic and Transportation.

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